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    What are the employment rules for a 501(c)3 Type II (509(a)3) supporting charity?

    I work for a 501(c)(3) charitable organization in California that is supported by a 509(a)(3) Type II supporting organization. The 509(a)(3) has its own separate board and bylaws apart from the 501(c)(3) that it supports, but the workers for both are the same. When workers from the 501(c)(3) are doing work for the 509(a)(3), the divide is clearly delineated. As the fundraising events planner, for instance, there is one event that I plan every year that raises money *only* for the 509(a)(3) and *not* for the 501(c)(3). I am restricted to use only the 509(a)(3)'s funds for the expenses and must use the separate mailing permit for the 509(a)(3) on all correspondence. This event takes up 90% of my working time some weeks and is planned over six months out of the year. When the 509(a)(3) files its 990 tax forms, however, it claims that it has only two employees--the executive director and the chief development officer. Is that legal? We are all here doing work for both organizations. If I am not an employee of the 509(a)(3), then am I a contractor? If I am a contractor, is the 509(a)(3) required to give me something in addition to my W2 for the 501(c)(3) that pays my salary? I have looked online into the rules for 509(a)(3) organizations as they relate to the 501(c)(3) that they support, but all I can find is guidelines on the leadership (i.e. rules for the board members).
    a few seconds ago 1 Answer

    Best Answer

    Very interesting! I would have looked at it the same way.
    a few seconds ago

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